Jim Sinclair: Gov’t to Raid Retirement Accounts to Fund Shortfall of Treasury Purchases

The Doc
Silver Doctors

The legendary Jim Sinclair sent an email alert to subscribers this afternoon warning that the US government will soon liquidate private 401k and IRA retirement accounts and force private retirement assets into treasury paper as no major buyers of treasury paper remain outside of the Federal Reserve.

Sinclair correctly notes that the practice has already occurred recently in several Western nations, and that investors can expect the same to occur in the US as the government runs out of funding options.

Sinclair recommends investors stop creating and funding retirement accounts at a minimum…

Read more at Silver Doctors.

Click here to subscribe to Jim Sinclair’s email alerts

Related: The Fed May be Pumped Up

…In Bernanke’s rush to increase employment and raise asset prices and lower mortgage rates, if not to help the President with his re-election; I would assert that the Fed did not go far enough in its thinking and that they may get stung by what they have not considered.

The issue here is gas at the pump…

Update 2: “We cannot count on problems elsewhere in the world to make Treasury securities a safe haven forever.”

The fixes are blindingly obvious. Economic theory, empirical studies and historical experience teach that the solutions are the lowest possible tax rates on the broadest base, sufficient to fund the necessary functions of government on balance over the business cycle; sound monetary policy; trade liberalization; spending control and entitlement reform; and regulatory, litigation and education reform. The need is clear. Why wait for disaster? The future is now.

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